Financing can make or break acquisitions. Banks seldom lend to SaaS companies, leaving you unable to Acquire beyond your means or get Acquired at a price that makes you happy. It’s a chicken and egg scenario that stalls acquisitions and stifles entrepreneurship.
Today, however, I’m delighted to share that we’ve partnered with Pipe to offer you fast, easy acquisition and growth financing through our marketplace. Yes, life just got a lot easier!
Learn more here (buyers): https://pipe.com/microacquire/buyer
Learn more here as a (sellers): https://pipe.com/microacquire/seller
Our CEO, Andrew Gazdecki, said, “We’re always looking for ways to help startups get Acquired, and financing has been a popular request. With Pipe, you can find the right startup and the means of acquiring it within the marketplace, widening the buyer pool for founders. This partnership will help acquisitions happen faster, easier, and at terms that make everyone happy.”
Why Seek Alternative Financing to Close an Acquisition?
Acquisitions should be a happy, everyday occurrence. For too many, however, it’s a bit like that Netflix show, Squid Game: a series of timed challenges, strict rules, and competing interests. Access to non-dilutive financing, however, removes a big obstacle for entrepreneurs struggling to extend their runways or attract acquisition offers for their startups.
It can take months to find the right SaaS business, and when you do, seller financing won’t always be enough to close the acquisition. A deal that includes both seller and alternative financing, however, could help close the gap before the exclusivity period ends. Founders get their asking price and buyers get a business without sacrificing equity or accruing restrictive debt.
But where do you get that financing? Banks don’t understand SaaS and will fuss over valuations and financials while ignoring your growth levers. Even if you’re successful, expect onerous terms and personal guarantees. It’s enough to scare anyone off acquiring a startup – especially first-time buyers. Pipe, however, knows SaaS, and offers financing without debt or dilution.
Buyers and sellers have a vested interest in making the acquisition a success. Access to financing shouldn’t be a factor in deciding whether a price is fair, nor should one side of the table shoulder all of the downside risk post-transaction. In other words, all else being equal, alternative financing enables a startup to get Acquired at a price that leaves both parties happy.
How Pipe Financing Helps SaaS Acquisitions Happen
What kind of alternative financing is on offer with Pipe?
Pipe is a trading platform for companies with recurring revenue. If you’re approved, Pipe can turn your monthly, quarterly or multi-year recurring revenues streams into upfront cash at a discount. In other words, the burden of financing moves from buyers and sellers to the startup’s performance (where it should be).
This is huge! In as little as 24 hours, your startup (whether one you own or want to Acquire) could be pre-approved for a cash sum to aid in its acquisition, shaving weeks off the timeline to close. We promised to help startups get Acquired, and with Pipe, buyers can boldly pursue the right acquisition, which allows more founders to exit and begin their next venture.
Alternative financing and SaaS go together like peanut butter and jelly. The similarities in business models, metrics, and growth strategies derisk acquisitions and their financing. Best of all, it’s non-dilutive, which leaves more in the hands of people who’ve earned or Acquired it. You can even get non-dilutive financing to fund growth, too.
How to Apply for Pipe Financing
We’re super excited to partner with Pipe as they’re the SaaS financing experts. Founders like Naval Ravikant (AngelList) and Des Traynor (Intercom) rave about them. They recently raised $250 million at a $2 billion valuation, so they know their stuff!
Pipe has made it easy to apply from within our platform, and you could be approved in as little as 24 hours. Here’s a quick breakdown of how it works:
- Apply for financing through your Acquire account.
- Pipe securely assesses your real-time metrics to determine the best trading limit for you.
- Get a response in as little as 24 hours.
- Once approved, Pipe’s platform connects with institutional investors to bid on your recurring revenue streams in return for upfront cash.
Pipe offers financing to companies with recurring revenue – perfectly suited for SaaS or any company that has recurring revenue streams.
We encourage you to consider Pipe financing when acquiring a SaaS startup (or selling one). It could drastically reduce the time to Acquire, de-stress negotiations, and result in happy faces all around.
Get Pipe acquisition financing for a SaaS startup acquisition today:
Need help MicroAcquiring a startup? Hire from over 50 approved M&A advisors, right here in the marketplace.